Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10) assuming a perpetual FIFO inventory system.
On January 1, 2021, the general ledger of Big Blast Fireworks included the following account balances: Accounts Cash Accounts receivable Allowance for uncollectible accounts Inventory Land Accounts payable Notes payable (6%, due in 3 years) Common stock Retained earnings Totals Debit Credit $ 23,300 40,000 4,500 37,000 72,100 28,900 37,000 63,000 39,000 $172,400 $172,400 The $37,000 beginning balance of inventory consists of 370 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January 3 Purchased 1,600 units for $168,000 on account ($105 each). January 8 Purchased 1,700 units for $187,000 on account ($110 each). January 12 Purchased 1,800 units for $207,000 on account ($115 each). January 15 Returned 135 of the units purchased on January 12 because of defects. January 19 Sold 5,200 units on account for $780,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Received $753,000 from customers on accounts receivable. January 24 Paid $520,000 to inventory suppliers on accounts payable. January 27 Wrote off accounts receivable as uncollectible, $3,200. January 31 Paid cash for salaries during January, $121,000. The following information is available on January 31, 2021. a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. At the end of January, $4,700 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. C. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $13,000. 1. Purchase 1,600 units for $168,000 on account ($105 each). 2. Purchase 1,700 units for $187,000 on account ($110 each). 3. Purchase 1,800 units for $207,000 on account ($115 each). 4. Return 135 of the units purchased on January 12 because of defects. 5. Sell 5,200 units on account for $780,000. 6. Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. 7. Receive $753,000 from customers on accounts receivable. 8. Pay $520,000 to inventory suppliers on accounts payable. 9. Write off accounts receivable as uncollectible, $3,200. 10. Pay cash for salaries during January, $121,000. 11. Record the adjusting entry for inventory. 12. Record the adjusting entry for uncollectible accounts. 13. Record the adjusting entry for interest. 14. Record the adjusting entry for income tax. 15. Record the closing entry for revenue. 16. Record the closing entry for expenses
